Siam Commercial fourth quarter profit up 26%

Thailand economic growth seen to boost the bank's loan demand in 2011.

Siam Commercial Bank SCB.BK (SCB), Thailand's fourth-largest lender, reported a 26 percent rise in quarterly net profit on Tuesday, beating analysts' forecasts, helped by strong loan growth and higher fee income.

The outlook for SCB and other Thai banks remains bright as loan demand should continue to grow in 2011 because of economic growth, while net interest margins are likely to go up as interest rates rise.

SCB said after the market close it made a net profit of 6.04 billion baht ($198 million) in the October-December period, above the 4.78 billion baht ($156,30 million) a year earlier and higher than the 5.80 billion ($189.69 million) forecast by seven analysts polled by Reuters.

Its full-year 2010 net profit was 24.2 billion baht ($791.46 million), up 16.6 percent from 20.8 billion baht ($680.29 million) in 2009.

Profit was boosted by a 12.6 percent rise in outstanding loans to 1.06 trillion baht ($34.67 billion) and a rise in its net interest margin to 3.63 percent from 3.42 percent in 2009.

Its non-interest income rose 20.6 percent, helped by fee and service income and higher gains on investments, the statement said.

View the full story in Reuters..